Mining supercycle ‘still going strong’

Informa Insights

Australia’s mining boom is not over, new research has revealed, although the market will undergo changes in the near future.

The Economist Intelligence Unit (EIU) described the country’s resources performance over recent years as a “supercycle”, with incredible demand from China and other emerging markets driving iron ore, base metals and coal.

However, a report by the organisation said there have been concerns the boom is over and previously viable projects are being mothballed due to declining commodity prices after the 2011 peak.

While academic sources have claimed prices will continue to rise long term, some investors and analysts have been more pessimistic, the In the Pits? report said.

“The Economist Intelligence Unit believes continued growth in China (slower, but from a larger base), ongoing global urbanisation, and structural factors such as higher energy and extraction costs will continue to support prices in the medium term,” it read.

Counter-cyclical capital…

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